| | Reality TV | | 
If you have ever watched any of the reality TV talk shows, it’s often hard to find a sympathetic character. Everyone is pointing fingers and placing blame, but often the blamer is just as unlikable as the alleged guilty party. Enter Federal Reserve Chairman Ben Bernanke talking to Congress on Tuesday with his semi-annual report on monetary policy. Backstop Ben, in his usual monotone, wasn’t throwing chairs or asking for paternity tests, but he seemed quite upset with Congress for messing with his QE infinity endeavors. Ben reprimanded them for their bad timing when it comes to the sequestration (because there’s a good time for draconian budget cuts?) and told them what they should be doing is trying to reduce the federal budget over the long run. Think of one crack addict on the reality TV show trying to teach the other about restraint. Of course the markets weren’t really listening to Ben trash talk Congress, all that was heard was his defense of the U.S. central bank’s monetary stimulus and the Fed’s continued plans to maintain the $85 billion in bond purchases each month. Major averages initially spiked higher after Bernanke defended his free flowing monetary ways, overturning fears from last week that the Fed might scale back its bond-buying program. But stocks gradually pulled back throughout the duration of his speech, with the S&P 500 and Nasdaq dipping into negative territory, as he failed to offer much new information to excite investors. In the afternoon the market trudged higher on minimal upside volume (and low average trade size as opposed to the morning when there were the European jitters) to get the S&P back to unchanged for the month. But as Friday approaches, we still may get a full on reality TV style melee if Congress turns on itself as we near the sequester deadline. Trade well and follow the trend, not the perma-bull OR perma-bear "experts." | ---Larry Levin
|
| | | | |
 | | Congratulations to Munawar Soomro! Results: Results:
[10:40 am] Munawar Soomro: Up $120.00 this morning just from three early morning signals from awesome Ed! Just trading one each mini-lot.
This is a great example of the fact that it is important to learn to walk before you learn to run!!! It isn't always about the amount of money that you make... ...it has a lot to do with staying within your risk parameters!! Quotes:
[10:45 am] Munawar Soomro: Ed is everything I look for in instructor/mentor! He not only generates mostly profitable signals, he teaches as well! So I can make money while learning! Can't beat that!
[10:42 am] Munawar Soomro: Ed, are you filled on USD/CAD swing sir?
[10:44 am] Munawar Soomro: Cool, I can get in market now. Thanks!
[10:48 am] Munawar Soomro: Thanks!!! | | NOTICE: Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. The average reader should not necessarily expect the same or similar results. Past performance is not necessarily indicative of future results. No person was compensated for providing a testimonial. |
| | Congratulations to Steven Lee: The Educator of The Day today is Steven Lee based on a profitable signal that was generated last Thursday and liquidated today for a potential profit of $1625.00. Not only does Steven show great consistency in the market but he also has a great gift for teaching others. It is very apparent by watching Steven throughout the day that he commands great respect from his students and has an amazing interest in their success! There is a tremendous amount of value when it comes to learning from the professionals, especially Steven Lee! Lets take a look at the feedback we gathered from Michael Shorr and our students:
02:05 pm] Michael Shorr: Hey I think we got one! I would like to nominate Steven Lee for his VXX trade signal. Last Thursday, he issued a trade signal to buy the Mar (Monthly) 24/26 call 1x2 ratio spread. We buy two of the 26's. The students got in between a debit of .20 to .25. This morning they exited between .75 to .85 credit. Max profit potential of .20-.85=.65*100=65 per one lot. We had it on 25x50 times. Although everyone seemed to have a strong day, Steven Lee is my instructor of the day nomination! |
OPTIONS: Volatility Commentary ---Steven Lee / Michael Shorr
| "The benefits of easing continue to outweigh the costs and risks", says Federal Reserve Chairman Ben Bernanke. So, it is status quo as we move forward with the Fed firmly in control! Bernanke added that "QE will continue until there are substantial labor market gains". The US equities shook off any negative news from Europe and rallied on better than expected housing data and consumer confidence as well as Bernanke's quite dovish language. Following up on yesterday's analysis of the VIX complex. Spot VIX did indeed stay above the VXX futures in the morning and as we identified, the futures moved up to actually be over the Spot VIX by the end of the trading day. This was a very favorable move for the trade signal that our desk generated last week and today an exit signal was generated. We continue to monitor this space going forward for further trading opportunities. |
FOREX: Currency Spotlight ---Ed Moya
| | Fed Chairman Ben Bernanke was dovish and concerns eased over the Italian elections, and all was well for global equities but the euro did not rally. The key takeaway from his semi-annual testimony on monetary policy was that the benefits of easing outweigh the costs and risks at this point. While the economic recovery is still going well for the U.S. economy, fear remains from the sequestration and the Fed will not ease off the QE pedal. Normally on Fed comment like that euro and pound would have rallied at least a full percentage point. Gold also gained its old bullish form after Bernanke said, “We do not see the potential costs of the increased risk- taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery.” The key move saw gold recapture the key 1600 handle. If we can see gold maintain this level for the rest of the week, gold may see its rally continue towards the 1650 level. While the euro fall paused yesterday, we note it was just one day, and traders are still cautious on maintaining a long position with the key 1.3000 so close. The yield on Italian 10-year bonds rose to 4.89%, and if we see the 5.0% level, traders should not be surprised if we saw 1.30 breached on the euro. |
STOCKS: Watch List ---Charles Moon
| As expected the market rallied to close up over 115 points in the Dow. After the aggressive selling in the markets yesterday, this rally was helped as profit taking took place and buyers saw great opportunities to enter into the market on the dips. The Dow and S&P market also approached critical technical levels and deflected off these price points and ran up for majority of the day. If the momentum continues look for buyers to press the Dow to test the 14k mark once again. The S&P had been supported at 1500.00 recently, but faltered to hold yesterday as the headlines drove the market through any defined support level. Interesting to see if there will be any reaction at the price if we climb up to that price. Will we see the support turn into resistance? If that turns out to be the case, that will be another small sign the markets maybe turning.
We saw housing make a turn back after they got hit hard yesterday. Lennar(LEN) and Toll Brothers(TOL) made strong moves up today both tallying gains of over 3% each. This was fueled by strong new homes sales from January as the numbers came in well above expectation. Also helping this drive was Lowes(LOW) and Home Depot(HD) reporting good revenue numbers on their earnings report. I this sector can maintain this momentum, then look for these stocks to make a nice jump here int he next few days.
It has been interesting to see the market reaction here as we are just days from the Sequester Deadline. Markets have become volatile and stocks are making strong moves in both directions. Keep looking short term positions in the market, and make sure you define your risk for the trade. If you hold onto a losing trade thinking it can rally back, the stock can really run away from you. Open Position: ABT X Stocks to Watch: AAPL GOOG IBM AMZN PCLN BBRY FB CTXS BAC C GS CMI CAT NFLX WDC LULU LNKD DIS KORS FOSL X QCOM STZ NKE CHKP JNPR POT GMCR HLF ABT LOW HD LEN TOL
|
FUTURES: Technical Data
| | Value Areas: ES 1495.25 / 1487.25
POC… 1494.00
YM 13877 / 13827
NQ 2712.00 / 2697.50 | NOTES FROM THE PIT
|
|
| COMMODITIES: Play of the Day ---Patrick Assalone | Gold futures scored the biggest one-day gain of the year Tuesday,
settling above $1,600 an ounce as testimony from the Federal Reserve’s
chairman touted the economic benefits of the central bank’s
quantitative-easing measures. Gold is often used as a hedge against
inflation. The gold market was off to the races and as trend traders
we are only looking long. Don't try to pick tops in this market. View Video Here
|
|  | | | | is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results. | | | | |
| Who is Trading Advantage? |  | |  | | |  | | | | | IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results. Trading Advantage LLC provides only training and educational information. By accessing any Trading Advantage content, you agree to be bound by the terms of service. Click here to review the terms of services. | | | | DAYTRADING involves high risks and YOU can LOSE a lot of money. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those talked about in our site. | | | | | |
This email was sent to ignoble.experiment@arconati.us by Trading Advantage
No comments:
Post a Comment
Keep a civil tongue.